When a Consumer Is Purchasing the Best Combination of Two

question 151

Multiple Choice

When a consumer is purchasing the best combination of two goods, X and Y, subject to a budget constraint, we say that the consumer is at an optimal choice point. A graph of an optimal choice point shows that it occurs

• A)along the highest indifference curve.
• B)along the lowest budget constraint.
• C)where the indifference curve is tangent to the budget constraint.
• D)All of the above are correct.

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Definitions:

Blueprints

Detailed technical drawings or plans for designing and constructing buildings, machines, or systems.

Instrument Panel

The dashboard section of a vehicle or machinery that houses the gauges, controls, and information displays for the operator.

Circular Display

A round-shaped screen or interface used in devices and instruments to visually present information or data.

Candle Power

A unit of measurement for luminous intensity, representing the light produced by a standard candle.